Following a string of regulatory controversies over the recent months, Binance is out to stump its authority by launching a $1 billion growth fund to support the adoption of its Binance Smart Chain.
The funds will be used for building multi-chain and cross-chain infrastructure to integrate other blockchains with Binance Smart Chain.
In a statement, the investment director of the Binance Smart Chain Accelerator Fund Gwendolyn Regina said:
“With the $1 billion initiative, our focus will be widened to building cross-chain and multi-chain infrastructures integrated with different types of blockchains.”
About 50% of the funds will reportedly be used for blockchain services including other niche areas like virtual reality and gaming in the crypto world.
About $300 million will be set aside for a builder program while $100 million will be used for talent development and liquidity incentives.
When it comes to liquidity incentives, the funds will be used to provide bonuses to crypto platforms.
Binance headache with regulatory authorities around the world
The recent few months have been quite tough for Binance as it has rubbed most regulatory authorities around the world the wrong way and they have come crashing down on it.
One of the biggest questions surrounding Binance is its lack of physical headquarters. The CEO Changpeng Zhao last month noted that headquarters was a necessity for the exchange. Zhao said,
“We have come to realize that we need a centralized entity to work well with regulators.”
The exchange has also faced legal actions from regulatory authorities in several countries including UK, Italy, Cayman Islands, Malaysia, Holland, Singapore, Japan, and South Africa.
In Singapore, Italy, and the Cayman Islands, the regulatory authorities said that the exchange is not licensed to do business in the countries. Singapore however recently confirmed that the application to have the exchange licensed was ongoing although the Monetary Authority of Singapore placed Binance in an Investor Alert list last month.
UK, Holland, and Japan have each issued a consumer warning against Binance. The UK however doubled down and instead said that Binance Markets Limited, which is a UK Binance entity, could not be regulated since it did not provide basic information to the regulator.
Malaysia Securities Commission took enforcement action against Binance for allegedly operating in the country without permission.
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